Oshawa economy forecast to grow Print

A new report by the Conference Board of Canada sees Oshawa as one of Canada's economic bright spots in the coming year.

Canada's slowing economy will weigh on growth in most of the 27 census metropolitan areas (CMAs) covered in the Winter 2011 edition of The Conference Board of Canada's Metropolitan Outlook. Only Oshawa, Windsor, Calgary, Regina, Saskatoon, London, Sherbrooke, Winnipeg, and Thunder Bay can expect higher real gross domestic product (GDP) growth this year than in 2010.

"Most Canadian cities rebounded well from the recession. This year, however, a weaker domestic economy, winding down of federal and provincial government stimulus measures, and uncertain economic conditions in the United States will result in stable or lower growth in a majority of cities," said Mario Lefebvre, Director, Centre for Municipal Studies.

Oshawa will post the third highest growth rate in the country this year, with GDP expected to rise by 3.5 per cent. Production increases at Oshawa's General Motors plant will boost output in the manufacturing sector by 4.4 per cent.

Windsor is forecast to post the fastest growing metropolitan economy in 2011. Following growth of 3.5 per cent in 2010, real GDP is forecast to rise 3.9 per cent this year. Construction activity will receive a big boost when the $1.6-billion Windsor-Essex Parkway begins later this year. Nevertheless, GDP in 2011 will still be below 2007 levels and Windsor's economy remains fragile. The battered manufacturing sector is convalescing and its level of activity remains below the peak reached in 2000.

Toronto's real GDP is forecast to expand by three per cent in 2011, down from 4.3 per cent last year. Continued uncertainty south of the border, lower housing starts, and winding down of stimulus programs will slow growth from the 2010 pace.